Tax Reform Could Ruin Home Ownership Dream

Letters to the editor

October 15, 1985

The administration`s plan to revise the federal tax code threatens to dash the traditional dream of home ownership. If Congress goes along with the administration, homeowners will no longer be able to deduct their property taxes when calculating their federal income tax. Also, the value of their mortgage deductions will be lower without any offsetting provisions.

In Broward County this would have a disastrous impact, particularly upon our already shaky oceanfront condo market. Together with the uncertainty which exists, Broward is already experiencing anxiety among many potential second home buyers. The annual cost of owning the average home would rise $1,100 each year, or 14 percent higher than now. Increased costs of ownership would be reflected in a corresponding loss of the value of homes - $10,000 for the average $85,000 house, or the equivalent of 20 percent of the lifetime savings of the typical home owning.

Because massive federal deficits have driven home interest rates to historic levels, the cost of home ownership has already skyrocketed. Congress should concentrate on eliminating the deficit, rather than taxing homes out of reach. This would lower interest rates, spur investment and provide the kind of economic growth that keeps the ``American Dream`` within everyone`s reach.